What should an organisation do, that sees intellectual credibility, public opinion and economic opportunity slipping away from it?
Richard Murphy has just published a blog post on Ernst & Young report on country-by-country corporate taxes reporting, and discussed about the problems the Big Four have with transparency.
In the comments, "Pellinor" disagrees with Murphy but do not argument at all why companies like EY would deliver a more solid audit than if it is delivered by much more transparent organizations like CA, TJN. The question remains, as Murphy said, "when it comes to assessing the truth and fairness of the resulting reports."
At the end, it is always the same thing: transparency has the unique virtue to smartly solve the dilemma: who will keep the keepers? Who will watch the watchers?
With a transparent system, there is no difference between people watched and watchers. Everybody can potentially watch everybody, with several levels of attention. Transparency means a more social way to control and drive the economy. Transparency emphasizes social networks.
And because transparency is a value on the uptrend (read my article about young europeans and the coming decade in Magazine of Political Anticipation #3), there is nothing EY or others can do to successfully oppose to this rise. Obviously more transparency in corporate taxes means a breaking trend in the oligopolistic market of accountancy. The only reasonable strategy to embrace for them is then to recognize this anticipated event as soon as possible and to build strategic partnerships with CA, TJN and others.
A quick entry in order to mention two articles that I just found, and to be read very carefully:
- “Networked minds” require a fundamentally new kind of economics, http://rwer.wordpress.com/2013/04/24/networked-minds-require-a-fundamentally-new-kind-of-economics/
- How Natural Selection Can Create Both Self- and Other-Regarding Preferences, and Networked Minds, http://www.nature.com/srep/2013/130319/srep01480/full/srep01480.html
It seems to be a great fundamental contribution for my own "Conscience Sociale" project. More to follow. Stay tuned.
Others relevant contents:
- Exploring How We Connect, And What It Means, interview with Drs Nicholas Christakis and James Fowler, 2009 (many others interviews here)
- Connected: The Surprising Power of Our Social Networks and How They Shape Our Lives -- How Your Friends' Friends' Friends Affect Everything You Feel, Think, and Do, Nicholas Christakis and James Fowler (1st edition 2009, with many translations available)
- The Corruption Epidemic: Why Good People Defend Bad Systems, Peter Zafirides, 12/2011
- On Social Stability and Social Change - Understanding When System Justification Does and Does Not Occur, A. C. Kay and J. Friesen, 12/2011
- Occupy Our Minds: To Empower Ourselves, We Need to Plug the 7 Holes In Our Heads; WashingtonsBlog, 06/2013
- System justification, Wikipedia
- Cognitive dissonance, Wikipedia
- Our articles about cognitive dissonance
- How Did the Neoclassical Paradigm Conquer a Multi-disciplinary Research Institution?Economists at the EHESS from 1948 to 2005. Autumn 2011.http://regulation.revues.org/9429?&id=9429